The ongoing process of revision and rethinking of the foundations of economic theory leads to great complexities and contradictions at the heart of economics. The Economics of Innovation provides a challenge to standard economics and one that can help it overcome its many criticisms. This title provides a systematic account of advances in the economics of innovation. By integrating this account with the economics of technological change, the book elaborates an understanding of the effects of the introduction of new technologies.

The concept of localized technological change is emerging at the crossroads of different approaches to the economics of innovation and new technologies. The term localized technological change' refers to the introduction of technological changes which make possible an increase in total factor productivity within only a limited range of techniques defined by the levels of factor intensity. This contrasts with generalized technological change', which is defined as the global shift of all the techniques represented on the map of isoquants of the neoclassical tradition.
The Economics of...